Please use the following calculator and quick reference guide to assist in calculating rental income from IRS Form 1040 Schedule E.
It provides suggested guidance only and does not replace Fannie Mae or Freddie Mac instructions or applicable guidelines. This
method should not be used when calculating rental income on a borrower’s primary residence. Check applicable guidelines when
rental income is declining year to year. Please check with your own legal advisors for interpretations of legal and compliance principles
applicable to your business.
Rental Income Calculation 2020 2019 NOTES
1 Gross Rents (Line 3)
*Check applicable guidelines
if not using 12 months.
**Net rental losses are
typically included with
liabilities when calculating
the debt ratio.
2 Expenses (Line 20) –
3 Depreciation (Line 18) +
4 Amortization/Casualty Loss/Nonrecurring Expenses (Line 19) +
5 Insurance (Line 9) +
6 Mortgage Interest (Line 12) +
7 Taxes (Line 16) +
8 Other: (HOA if Applicable) +
9
Annual Rental Income/Loss
=
10 Number of Months Considered (Line 2)* /
11 Monthly Income/Loss =
12 Monthly Mortgage Payment (Verified) –
13 Monthly Net Rental Income/Loss** =
Rental Income Calculation 2020 2019 NOTES
1 Gross Rents (Line 3)
*Check applicable guidelines
if not using 12 months.
**Net rental losses are
typically included with
liabilities when calculating
the debt ratio.
2 Expenses (Line 20) –
3 Depreciation (Line 18) +
4 Amortization/Casualty Loss/Nonrecurring Expenses (Line 19) +
5 Insurance (Line 9) +
6 Mortgage Interest (Line 12) +
7 Taxes (Line 16) +
8 Other: (HOA if Applicable) +
9
Annual Rental Income/Loss
=
10 Number of Months Considered (Line 2)* /
11 Monthly Income/Loss =
12 Monthly Mortgage Payment (Verified) –
13 Monthly Net Rental Income/Loss** =
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Calculator and Quick Reference Guide:
Rental Income
Property 1
Property 2
Borrower(s) Name(s)
Loan Number
For full functionality, download PDF first before entering data. Please download before
each calculation as calculators are updated periodically.
Calculator Usage Note: Click Grey Buttons to Divide for Monthly Totals
This calculator can be found at https://mi.genworth.com/self-employed-borrower-calculators.